Tax deduction is a reduction in tax obligation from your gross taxable income. Tax deductions are deducted from taxable income which is also known as adjusted gross income. Tax deduction varies in amount as different incomes are treated differently under various sections of income tax act. For the current year, an additional deduction of Rs. Income tax section 80C replaced section 88 and became effective on 1st April,
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Eligible tax deductions reduce your tax liabilities, enabling you to save a considerable percentage of tax that is otherwise applicable on your income bracket. You have to file for tax deductions, with relevant proof to support your claims, to avail the provisions mentioned in the Income Tax Act, The Government of India offers deductions on expenses that contribute to the social good to garner active participation in such activities from citizens. While your contributions towards charity, medical expenditures and tuition fees is tax deductible, you can also claim deductions and exemptions through investments in relevant schemes like insurance plans, national savings schemes, retirement savings schemes, etc.
The extensive list of deductions that an individual can claim under Section 80C has encouraged the creation of a sub-section for enhanced transparency of the provisions to the taxpayers and their better understanding. Here is the list of sub-sections and the tax benefits that an individual can claim. This includes deductions on investment towards Pension Funds, irrespective of the insurer, up to a maximum of INR 1.
This deduction is applicable for individual taxpayers only. This section provides tax deductions for investments towards specific pension schemes, as notified by the Central Government.
This section serves as a boost for taxpayers to inculcate the habit of savings. This sub-section has been categorised into 3 parts —. This sub-section provides tax deductions on subscription of specific long-term infrastructure bonds, as notified by the government.
Benefits under this section have been discontinued from A. This section is aimed at providing tax deductions for physically disabled individuals. Individuals suffering from physical conditions like autism, cerebral palsy, etc. What are the expenditure that make me eligible for tax exemptions under Section 80C of the Income Tax Act? You will be able to claim tax deductions under Section 80C of the Income Tax Act, , if you invest in any of the following:.
An individual is eligible to claim tax deductions of a maximum of INR 1. What are the schemes that I can invest in to be eligible for tax deductions under 80C of the Income Tax Act, ? Professional Tax Professional Tax in Maharashtra. PF Withdrawal Salary calculator. Best investment policies at lowest premiums. Top performing investment plans, better than mutual funds. Plans with zero commissions. Deduction Under Section 80C and 80U.
What is Tax Deduction? Tax Deductions under Section 80C. Sub-sections under Section 80C. Section 80CCC. Section 80CCD. Section 80CCF. Section 80CCG. Tax Deductions under Section 80U. Frequently Asked Questions. Who is eligible for filing deductions under 80C? What is the maximum deduction that I can claim under 80C?
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Income Tax Exemption
The Income Tax department provides tax benefits to taxpayers in case they incur certain personal expenses insurance policies, loans etc. A deduction in income tax is the investment or expense that helps individuals in reducing the tax payable. The income tax deduction reduces your gross total income means the income on which tax has to be paid. Thereby, reducing the tax on your total income while filing your income tax return. The following guide will help you under the amount of tax exemption provided under each section as well as who can avail those exemptions. Income tax deduction needs to be claimed at the time of filing your income tax return and no separate disclosure compliances have to be made.
Deduction Under Section 80C and 80U
Updated on Jun 03, - AM. You can claim a deduction of Rs 1. In simple terms, you can reduce up to Rs 1,50, from your total taxable income, and it is available for individuals and HUFs. Start your Tax Return Now. I want an expert to help me file.
The Various Deductions Under Section 80 in India
Deductions are the exemptions on the amount taxable as per Income Tax Act. Maximum deduction allowed is Rs. Section 80GG Self a. Deduction is allowed Income received of royalty or whichever is less.